Orkla invests in Iceland’s leading chocolate producer

By Anthony Myers contact

- Last updated on GMT

Nói Siríus is a market leader in Iceland, with several popular brands. Pic: Nói Siríus
Nói Siríus is a market leader in Iceland, with several popular brands. Pic: Nói Siríus

Related tags: acquistion, Chocolate

Orkla ASA has announced it has signed an agreement to purchase 20% of Icelandic company Nói-Siríus HF ('Nói Siríus'), Iceland’s leading chocolate and confectionery manufacturer.

Nói Siríus was established in 1920 and has approximately 150 employees. The company is currently owned by several private investors, with its main operations in Reykjavik. The two parties said current managing director Finnur Geirsson will continue to lead the company after completion of the agreement.

The company had a turnover of ISK 3,436m ($27.52m) in 2018 and its chocolate brands include Síríus, Nóa Konfekt, Nóa Kropp, Nóa Páskaegg and Konsum.

A market leader in Iceland’s confectionery market, over 70% of the company’s turnover is generated by domestic market sales – with a growing percentage of export and tax-free sales. The business also distributes global brands of chocolate, snacks and breakfast products.

Orkla operates in Iceland through the partly-owned company Dragsbæk, which is part of the Orkla Food Ingredients business area. In addition, several of Orkla’s brands such as Toro, Grandiosa, KiMs, OLW and Jordan are sold in Iceland through distributors.

Nói Siríus holds a unique position in Iceland and is a good fit with Orkla’s portfolio of leading brands. Chocolate, snacks and confectionery are showing good growth and are core categories for Orkla. We see a potential for creating value by utilising the companies’ strengths across markets, improving production efficiency and building on our position in Iceland, which is a growth market​,” said Jeanette Hauan Fladby, Orkla executive vice president and CEO of Orkla Confectionery & Snacks.

The parties have agreed not to disclose the purchase price. Under the agreement, Orkla has the possibility to purchase the remaining shares after 2020. The agreement is contingent on the approval of the Icelandic competition authorities.

Related topics: Manufacturers